Why Vendors Can't Quantify the Financial Value of PLM, PLM - Don't Wait


2PLM Newsletter

John Stark Associates                                                                                                                                          March 3, 2014 - Vol16 #6

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Why Vendors Can't Quantify the Financial Value of PLM
by Roger Tempest
During a company's search for a PLM solution, a PLM vendor will paint a picture of improved business performance, underpinned by an expensive but powerful software platform. The vendor is then asked to state exactly what the financial benefits will be. The company sees this request as perfectly normal, clear and straightforward.

So why doesn't the vendor give a clear and straightforward answer?

The problem is not that the vendor is in any way devious or negligent. The simple reason is that the user is asking for something that is logically impossible.

At the outset, the vendor cannot provide metrics, nor indicate precisely what the future benefits will be, because all of the impact of PLM is on the user's business - so the user has the figures, not the vendor.

The vendor can help the user to identify and quantify these figures, but cannot provide them unilaterally. The user and the vendor must work together to define them. This takes time and effort, and means that the "discovery" activity recommended by vendors really is necessary.


Vendors want this process to be as quick and effective as possible, and users do not want to have to undergo three or four completely separate discovery exercises if they are talking to several vendors. The PLM Financial Framework workshop in Frankfurt last year concentrated on this area, and developed a standardised format which maximises the clarity of the outcome, and also acts as an internal discussion mechanism that the user PLM Manager can use with his or her non-PLM colleagues.

The aim is not to produce "vanilla" results, but to provide the time and structure to highlight the strengths of each vendor's approach, and to make it as easy as possible to set firm financial targets. The motivation for adopting this standardised format is that future user-vendor engagements will produce good results earlier and quicker for the vendors that support it.



Roger Tempest is co-founder of the PLMIG. Membership of the PLMIG is available via membership@plmig.com.

PLM - Don't Wait
by Scott Cleveland
You have identified a problem that is costing your company money. You believe that PLM software may be a part of the solution. Let's assume that is true.

What are your decision options?

Do Nothing....
The cost of the problem continues if you choose to do nothing. It is costing you money every day, week, month, etc and it could be growing.

Do Something....
If you make a good decision on the software selection, you should begin to see quantifiable benefits in about 6 months. You may still be tweaking the implementation, but you will be confident that you have made a good decision.

If you make a bad decision on the software selection, be prepared to learn a lot. You will have a much better understanding of the problem. You will know a lot more about PLM software - what it can and can't do. You should be able to generate an accurate, detailed requirements document. You will have first-hand experience to call on when you are making your new decision. You will not be swayed by a good sales demonstration. Your new decision will be a well-informed decision.

A PLM consultant should be able to help you make an informed decision - contact me for help if you choose the 'do something' path.


Scott Cleveland can be contacted on +1 408-464-6387

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Intergraph announced the acquisition of GT STRUDL from the Georgia Tech Research Corporation. Details 


Autodesk, Inc. reported financial results for Q4 and the fiscal year ended January, 31, 2014. Q4 revenue was $587 million. Full fiscal year revenue was $2,273.9 million. Details

Cimatron Limited announced financial results for the fourth quarter and full year of 2013. Revenues were $44.2M in 2013 and $12.7M in Q4/13. Details

FARO Technologies, Inc. announced results for the fourth quarter ended December 31, 2013. Sales were $89.9 million. Details

Lectra announced consolidated financial statements for the fiscal year 2013. Revenues were Euro 203 million. Details

Mentor Graphics Corp. announced results for the company's fiscal fourth quarter ended January 31, 2014. The company reported revenues of $401.0 million. For the full fiscal year, revenues were $1.156 billion. Details

Rand Worldwide, Inc. announced its financial results for the three months ended December 31, 2013. Revenues were $24.5 million. Details

3D Systems Corp. announced Q4 and full year 2013 results. Q4 revenue was $154.8 million, full year revenue was $513.4 million. Details



Dassault Systemes announced the appointment of Roberto Schettler to the position of CEO, RTT Group. Details 


AVEVA announced that NGLTech Sdn Bhd. has chosen AVEVA Everything3D. Details

AVEVA announced use of AVEVA Electrical and AVEVA Instrumentation by GHD. Details

Gerber Technology announced that Bosco Sport is using YuniquePLM. Details

Gerber Technology announced that Jonathan & Fletcher selected Gerber Technology's YuniquePLM system. Details  

Lectra announced that Imperial is implementing Lectra Fashion PLM. Details

MSC Software Corp. announced use of Marc at Imperial College London. Details

Siemens announced that its LMS software was used for structural analysis on the Airbus A350 XWB. Details

Siemens announced that L'Oreal S.A. selected Teamcenter to help optimize its packaging development processes, reduce time-to-market, and improve product innovation and quality. Details

Sigmetrix announced that Vestas Wind Systems A/S selected CETOL 6 Sigma and GD&T Advisor. Details 


CCE announced EnSuite 2014. Details

CD-adapco announced the release of STAR-CCM+ v9.02. Details

C3D Labs (ASCON Group) announced C3D V15. Details

Gerber Technology announced the launch of its Taurus II leather cutting system. Details

Hexagon Metrology announced the 7.10.7 SF. Details

Hexagon Metrology announced the m&h IRP40.50 infrared touch probe. Details

Infor announced Infor Fashion PLM. Details

Intergraph announced that it has released SmartPlant P&ID 2014. Details

KISTERS announced the release 2014 of the 3DViewStation. Details

Kubotek USA announced KeyMarkUp Version 12. Details

VirtualGrid announced the release of VRMesh Triangulation for AutoCAD. Details 


The Altair Partner Alliance announced the availability of AcuNexus through the program. Details

The Altair Partner Alliance announced that AlphaCell, from MATELYS, is available for download by enabled HyperWorks users. Details 

 Product                         Lifecycle                         Management: Paradigm for 21st Century Product                         Realisation

CONTACT Software and Trubiquity announced an extension to the existing TRUfusion interface to CIM DATABASE PDX. Details

MSC Software Corp. announced a cooperation with BASE Ltd. Details

Yunique Solutions announced the creation of its Certified Partner Program. Details 


Actify Inc. announced an update on its progress for the first half of its 2014 fiscal year. Details

Aras announced it has included upgrade services in the Aras subscription. Details

Aras announced results of scalability of Aras Innovator 10 running Microsoft SQL Server 2012 Enterprise Edition. Details

CONTACT Software announced it provides partners and third-party vendors with an open technology platform for developing custom PLM solutions. The new component architecture offers partners a modular software toolkit which, in conjunction with a powerful development environment, supports different business models. Details

CONTACT Software GmbH announced CONTACT Software NEWS 03/2014. Details

Dassault Systemes announced that Georgia Tech will adopt the company's 3DEXPERIENCE platform for 10,000 users (students and educators). Details

Datakit announced that it is participating in the SIP (Standards & Interoperability PLM) project. Details

Lantek announced that it anticipates growth of 20% in 2014. Details

Lectra announced its support of the Council of Fashion Designers of America (CFDA)'s Fashion Manufacturing Initiative (FMI). Details

ModuleWorks announced that, in a nationwide survey of IT employers across all of Germany, ModuleWorks has been recognized as one of the 50 best employers in the IT industry. Details

Modultek announced Modultek Newsletter 1/2014. Details

MSC Software Corp. announced the MSC Learning Center. Details

Siemens announced a $66.8 million in-kind software grant to Cincinnati State Technical and Community College. Details

Siemens announced that President Barack Obama announced that the Digital Lab for Manufacturing in Chicago will receive $70 million through a U.S. DoD cooperative agreement. As part of this public/private effort, Siemens has been named as the only supplier of product lifecycle management (PLM) software that will serve as a top tier partner for the Digital Lab. Details

Sopheon announced that they have been recognized by Consumer Goods Technology readers as a top provider of New Product Development (NPD) & Introduction Solutions for the consumer goods industry. Details

The Trace Group - featuring TraceParts and Trace Software International - announced that revenue for 2013 was Euros 7,980K. Details

ZW3D reported its fiscal year 2013 financial performance. Details



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